All tagged 1031

Construction Exchange if You Are Moving From a Property of Greater Value

investors will undergo a 1031 Exchange when switching from one property ownership to another.  This means that the proceeds gained from the original property to buy the new property can become tax exempt.  In most cases, you have to change over to a property of equal to or greater value than the one you currently have in order to undergo this kind of exchange.  But what if you want to move into a property of lesser value?  One option is to build improvements onto the new property.